METHODS OF PERFORMANCE APPRAISAL
Appraisal methods are divided into two I. II.
Traditional Methods Modern Methods
Graphic Rating Scales
GRS is also known as Linear Rating Scale and is one of the oldest widely used and simple technique GRS compares individual performance to an absolute standard. The appraisers are supplied with printed forms, one for each employee. These forms contain a number of objectives, behavior and trait based qualities and characters to be rated like quality & volume of work, job knowledge, dependability, initiative, attitude etc.,
Rating Scales are of two types 1. Continuous Rating Scale 2. Discontinuous Rating Scale Under continuous rating scale continuous order Like 0,1,2,3,4 and 5 are used. Under discontinuous rating scale appraiser assigns the points to each degree. Performance regarding each character is known by the points given by the rater. The points are added to find out the overall performance.
RANKING METHOD
Under this method, the employees are ranked from best to worst on some characteristics. The rater first finds the employee with the highest performance and the employees with the lowest performance in that particular job category and rates the former as the best and the latter as the poorest. Then the rater selects the next highest and next lowest and so on until he rates all the employees in that group.
PAIRED COMPARISION METHOD
This method is relatively simple. Under this method, the appraiser ranks the employees by comparing one employee with all the other employees in the group, one at a time.
FORCED DISTRIBUTION METHOD
Under this method, the rater after assigning the points to the performance of each employee has to distribute his ratings in a pattern to conform to normal frequency distribution. Under this method employees are placed in certain ranked categories but not ranked within the categories.
CHECKLIST METHODS
1.
2. 3.
The checklist is a simple ranking technique in which the supervisor is given a list of statements or words and asked to check statements representing the characteristics and performance of each employee. There are three types of checklist methods, Simple Checklist Weighted checklist Forced choice method
i.
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Simple Checklist Method: The checklist consist of a large number of statements concerning an employee behavior. The rater checks to indicate if the behavior of an employee is positive or negative to each statement.
CRITICAL INCIDENTS METHOD The supervisor continuously records the critical incidents of the employee performance or behaviors relating to all characteristics (both positive & Negative) in a specially designed note book. The supervisor rates the performance of his subordinates on the basis of notes taken by him.
ESSAY OR FREE FORM APPRAISAL
The manager writes a short essay describing each employee’s performance during the rating period. Evaluation of overall performance based on strengths/weaknesses of employee performance rather than specific job dimensions. Manager should have good writing skills.
GROUP APPRAISAL
Under this method an employee is appraised by group of appraisers. The group consist of Immediate supervisor Managers or head of the departments Consultants ■ The immediate supervisor enlightens other members about the job characters, demands, standards of performance etc., then the other group members appraise the employee performance.
This
method is widely used for the purpose of promotions, demotions and retrenchment appraisal.
CONFIDENTIAL REPORTS
Assessing the employee’s performance confidentially is a traditional method of performance appraisal. Under this method, the superior appraises the performance of his subordinates based on his observations, judgement and intuitions. Superior does not allow the employee to know the report and his performance.
The
superior writes the report about his subordinates strengths, weaknesses, intelligence, attitude to work, sincerity, commitment, punctuality, attendance, conduct ,character, friendliness etc.,
MODERN METHODS Behaviourally
Anchored Rating
Scale Assessment Centre Human Resource Accounting Management by Objectives 360 Degree Appraisal
BARS
It combines elements of the traditional rating scales and critical incident methods. Using BARS, job behaviours from critical incidents-effective and ineffective behaviours are described more objectively. The method employs individuals who are familiar with a particular job to identify its major components. Then they rank and validate specific behaviours for each of the components.
HOW TO CONSTRUCT BARS
Step I: Collect Critical Incidents: Job holder and supervisors who have knowledge of the job describe specific examples of effective and ineffective behaviours related to job performance. Step II: Identify performance Dimensions: The people were assigned of developing the instrument cluster pertaining to the incidents into a small set of key performance dimensions. Generally between 5-10 dimensions account for most of the performance.
Examples of performance dimensions include technical competence, relationship with customer handling or paperwork and meeting day-to-day deadlines. Step III: Reclassification of Incidents: Another group of participations who are knowledgeable about the job is instructed to translate or reclassify the critical incidents generated previously. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes.
Step IV: Assigning Scale Values to the Incidents: Each incident is then rated on a one-to-nine scale with respect to how well it represents performance on the appropriate dimension. A rating of 1 represents ineffective performance; the top scale value indicates very effective performance. The second group of participants generally assigns the scale values. Step V: Producing the final instrument: About 6-7 incidents for each performance dimension will be used as behavioural anchors.
ASSESSNENT CENTRE
This method of appraising was first applied in the German Army in 1930.Later, business and industrial houses started using this method. This is not a PA Technique It is a system or organisation, where assessment of several individuals is done by various experts by using various techniques. In basket, role playing ,case studies, simulation etc are used to evaluate the employees.
Human Resources Accounting
HR Accounting deals with cost and contribution of human resources to the organisation.
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